DISTRIBUTION
CHANNELS (DC) IN THE TECHNOLOGICAL INDUSTRY - IDEAS FOR IMPROVEMENT IN ARGENTINA
Leandro
A. Viltard
Pontificia
Universidad Católica Argentina (Buenos Aires),
Doctorado
en Diseño y Comunicación y Facultad de Ciencias Econômicas,Universidad de
Palermo,
Universidad
Nacional del Comahue, Argentina
Universidad
del Pacífico, Ecuador
E-mail: lviltard@yahoo.com.ar
Leandro
Viltard
Universidad
Nacional del Comahue, Argentina
E-mail: leliviltard@yahoo.com.ar
Submission: 5/4/2020
Revision: 6/3/2020
Accept: 8/15/2020
ABSTRACT
For many years, the DC operation -covering massive sales and value added solutions- have been a reality in the Argentinean technological industry. Manufacturing companies have used them as a central part of their commercial growth/value added strategies to provide greater geographical coverage and adequacy to the products/services offered. As a result, this work shows different DC facets of this environment and possible improvement aspects. Management focus could bring better performance levels for the organizations that configure this complex and exciting industry. The hypothesis of this study –which was corroborated- is that there are aspects that can be improved in the DC operation of the Argentinean technological industry, bringing value added and sustainable growth to the companies’ network. Main findings of this work reveal that long DC and hybrid models are mostly used by manufacturers because they improve commercial reach, final customers’ solutions and purchase experience, providing the highest possible flexibility and profitability. It also requires cost optimization, channel efficiencies and vertical conflicts reduction. In addition, there are challenges connected to: a) the whole DC network value understanding and the optimal channel level mix, b) customer demand generation, c) the technology/cloud-based businesses and the SMB (Small Medium Business) that need more personalization and value added focus, d) remote channels/online platforms versus physical channels, e) the Opportunity Registration process as a way to protect the DC investment in certain key customers, and f) training opportunities, among others. The final objective referrers to get away from imitation and commoditization, proposing a unique value proposition for which strategy and marketing plans should create long term customer value. Finally, best practices are remarked as a way to evolve to new performance levels. The study is exploratory-descriptive, with a qualitative methodology, and it is supported with a bibliographical and an empirical analysis.
Keywords: distribution; channel; business partners; wholesalers; technological industry
1.
INTRODUCTION
For many years, the DC operation -covering massive sales
and value added solutions- have been a reality in the Argentinean technological
market. Manufacturing companies or brands –as they are called in this industry-
have used them as a central part of their commercial strategies in order to
provide greater geographical coverage and adequacy to the products/services
offered.
In connection with the above, this work finds its
fundamental motivation in the opportunities that can be found from the
appropriate management of this operation in Argentina and its impact on
sustainable competitive advantages generation. In this highly competitive
context developed in recent years, it is possible to observe certain challenges
and inconsistencies between the expectations in both types of organizations
regarding their commercial relationship and training programs, such as:
· Market coverage and conflicts: in front of the manufacturer’s impossibility
to have adequate market coverage all over Argentina, some experts remark that
DC are a fundamental commercial chain link in order to reach end customers more
effectively. In this sense, Miquel Perris et al. (2008) and Muñiz
González (2014) assert that hybrid models and long channels[1]
are mostly used in this industry as they provide a better coverage at a lower
cost, despite what specialists said that could bring potential
relationship/profitability conflicts between the manufacturer and the DC
network (called vertical channel conflict) as –sometimes- they are immerse in
their own paradigms and problematics.
· Customer’s migration to more profitable DC: Caylar et al. (2014)
establish the need to carry out a specific plan that allows customers to
migrate to DC that are more profitable for the manufacturer, coinciding with
the specialists that were consulted.
· SMB approach:
CDs have been and will be important to the Small Medium Business (SMB). Avrane-Chopard et al. (2014) have deepened this concept
establishing that -in 2015- this market will represent annual revenues of USD
28 billion, with a net profit of approximately USD 3.5 to 4 billion. At the
same time and since the DC have their origin in a more standardized world the
author argues that the manufacturers’ challenge is to provide them with
adequate training on value added alternatives. Berland
and Furtado (2015) and Duarte et al. (2015) coincide on the need for new value
added practices to respond to an increasing challenging market demand, which
should be supported on distribution chain and coverage growth, and on online
sales/support platforms.
· Incentives and promotions: According to what was verified through the opinion of some experts,
promotions and incentives had been important to generate demand in the short
and medium term. In this sense, it becomes a priority to adequately implement
these tools and to improve the communication between both organizations so that
they can cover the greatest number of market requirements.
· Comprehensive training/educational programs: agreeing with the interviewed experts, Islas Murguia and Macias Correa (2013) point out that the
training sessions should be tailor made and go beyond technical matters,
including commercial/management topics and tools that will allow a better
products/services value transmission and set aside from market commoditization.
As a result, improvement opportunities become an
objective in this industrial sector and specifically of this work, spanning
from business to training/educational issues. The final goal connects with
organizational growth, value added and sustainability.
The hypothesis of this study indicates that there are aspects that can be improved in the Argentinean technological industry DC operation, bringing value added and sustainable growth to their network.
Therefore, the main objective of
this work refers to the study of the current DC operation in the technological
arena, identifying areas for improvement in their relationship with
manufacturing companies in Argentina.
The following questions have allowed guiding this
investigation:
· What are the factors that favor the
manufacturer-DC relationship and profitability?
· Are there any improvement
possibilities in the Argentinean technological market?
It is important to express some
clarifications/limitations in order to give a better understanding of this
study:
· Due to the lack of studies that make
specific reference to this specific matter, it is observed an impossibility to
analyze specific theories regarding DC within the technological industry. For
this reason, the conceptual framework was built from a broader point of view,
with national and international authors/publications. It includes
organizational growth; value added alternatives; strategy, marketing, and
training; and improvement opportunities in those areas.
As a result, the Theoretical Framework that was
utilized is the one that was judged necessary to support the present study,
although it could be found other
authors and publications that may complement it. Also, classical authors were
included as they present an updated perspective on the studied matters.
· The field work is based on the
objective and the hypothesis raised. Due to the little theoretical DC
information in the technological arena, mostly in Argentina, the study is
complemented with a field work that includes three interviews with industry
specialists. This technique is the one that was judged as appropriate for this
investigation, although there could be perform other ones.
In any case, a certain reservation is presented regarding
the particularities that this complex
market presents in countries like Argentina.
· The conclusions are connected with
the Theoretical Framework and field work performed.
The prior clarifications/limitations were not an
impediment to reach appropriate conclusions and comply with the hypothesis and
the objective of this work.
The study is exploratory-descriptive, with qualitative
methodology. In addition, it is holistic because it contemplates a wide configuration
in which the studied object is located. It
is used a non-experimental design and –among them- transversal, as the
information was gathered at a certain point in time.
The analysis unit is related to international and
national distribution channels of this industry, in general, but specifically
to the Argentinean network. The characteristics of these companies vary in
aspects such as the Head Office and branches location, size (in terms of
quantity of personnel and revenues, among others) and the countries in which
they operate.
The criteria used to select the sample is non
probabilistic, intentional and directed. Being a qualitative investigation, the
sample size has not implied a scope limitation.
Both, a
bibliographical and an empirical study were performed. The bibliographical
research implied data collection and the analysis of the information obtained
through relevant secondary sources, mainly international authors and
publications. The field work is composed by interviews –made through Skype- to
three different specialists who had a vast experience in the regional industry
and in Argentina. This analysis tried to deepen in the main characteristics and
knowledge that emerged in this industry.
The response unit is constituted by the experts that were
interviewed in the field work.
It is clarified that it is not possible to generalize the
findings that are presented due to the fact that this research responds to a
qualitative design, with a non-probabilistic, directed and intentional sample.
Anyway, the final conclusions can be useful for decision making.
This research was performed from Aug., 2019 to May 2020,
and was carried out in Buenos Aires, Argentina.
As a result of this study, it is highlighted that the
hypothesis was corroborated and the objective verified.
2.
THEORETICAL FRAMEWORK
There were identified certain important topics to support
technically and theoretically this research, which refer specifically to DC and
some related matter that were identified.
2.1.
Distribution Channels (DC)
For manufacturing firms, DC are a fundamental way to
reach end customers in a timely manner and with an adequate support. So,
different elements will be studied in connection to the DC understanding; the
benefits, challenges and possibilities that they offer; and –finally- their
importance for organizational growth and sustainability.
2.1.1. DC understanding
Currently, many technological companies use DC as a sales
strategy for their products/services. According to Selva
and Conde (2013) and Logenecher et al. (2012), they
represent the conduit that is chosen to deliver products -in the most complete,
efficient and economical way- from the production company to the final
consumers.
At the discretion of Miquel Peris
et al. (2008), the DC can be classified in three ways: according to their
length, to their sales technology and to their organizational form. Due to the
scope of the present study, the length classification will be considered,
especially since it is the most widely used in the technological market, having
three fundamental actors:
· Direct Channels: implies that the
manufacturer and the final consumer are connected directly. It is mostly used
in the services market.
· Short Channels: consists in three
levels: manufacturer, distributor and final consumer. It is used when the offer
is at the manufacturer or distributor level.
· Long Channels: includes four levels:
manufacturer, wholesale distributor, retail distributor and final consumer. It
is used with clients that are difficult to reach, so a greater capillarity is
needed.
González (2014) remarks that:
· Long channels are mostly used in the
technological arena since they cover an important commercial dimension in this
market.
· Property transfer becomes a key
factor to be considered as a channel. Therefore, the main fact is that
ownership must change hands.
· There are some questions that must
be asked when defining what type of DC is most suitable for a manufacturing
firm, namely:
o
What
product control is intended to be carried out?
o
Will
you reach all corners of the country?
o
Will
you intervene on the final price fixing?
o
Will
you be involved in all promotional activities?
o
Does
your company have great financial capacity?
o
Is
there a large commercial team available?
o
Is
there an interest to go into other countries directly?
o
Are
the logistics infrastructure characteristics known?
o
What
level of information is desired?
o
Is
there the intention to be on the market 365 days and 24 hours?
The author concludes that the best
DC design and operation will depend on the appropriate answer to the preceding
questions. Failure to do so implies leaving free paths to competitors and
making it impossible to generate competitive advantages.
A particular consideration should be put on the new DC
that emerge in every market. In this sense, Caylar et
al. (2014) highlight -among the many challenges that this sector has- the need
to make the best use of the new DC, generating a coherent and concrete plan for
them. In addition, they say that:
· At least, 70% of the customers have
information from two channels and then they compare conditions on product,
price and availability, among other variables.
· 50% of the customers search for
information through one channel and then buy through another.
2.1.2. DC benefits, challenges and
possibilities
Caylar et al. (2014) propose
some DC benefits when the right channel strategy is implemented:
· Solutions’ sales, not solitary products: company revenues can grow exponentially when
the DC can add value to the customer.
· Cost optimization: choosing the most convenient DC for each business.
· Consumer experience improvement: when integrating DC’ feedback.
· Channel efficiency: if there is a clear differentiation in terms of brand.
Also and as product commoditization increases, the
authors indicate that there are diverse challenges that must be faced: a)
remote channels, which are attracting more sales through online platforms, and
b) call centers, which are being used by manufacturers to make more sales. But,
physical channels have still dominance in the market as many customers prefer
them because they offer face to face attention and product testing at the time
of purchase.
In turn, they propose a series of questions that become
important in order to capitalize the potential of a manufacturer's DC:
· What is the DC economic performance
in a variety of transactions?
· How does a firm define a correct mix
of channel types that promote sales, services and access to information?
· What would be the implications of
changing that channel mix?
· What would be the correct firm approach
to reach the desired mix?
· What would be the barriers that
would prevent a customer from taking the most efficient DC for the company?
· How can these barriers be
neutralized and how can the company help the customer to be able to do it?
Finally, the authors offer certain possibilities to
increase business growth at DC level:
· DC network value definition: each manufacturer must establish requirements and proposals that each
DC must have in conjunction with the whole channels itself.
· Top channels value added identification: products/services must be associated to DC
profits and possibilities. In this sense, it must be known the value added that
top channels provide to the business.
· Optimal channel level mix and sales: it is required a 3-year plan that must
contain a channel business map, areas for profitability and investments
improvements that will be made for brand development and growth.
· End customers and collection of product experiences information: product customer experiences must
be clearly identified as well as the barriers that prevent their adoption.
· Specific actions on channel mix: they must be reflected in a plan,
establishing concrete steps so that the customer can migrate towards the
manufacturer’s optimal and most profitable channels. Also, it is important to
described the incentives that the channel will receive and the infrastructure
that will be provided, among others.
2.1.3. DC importance for firm’s growth
According to Avrane-Chopard et
al. (2014), Small and Medium Businesses (SMB) must be considered a key partner
for business growth in the technological arena, especially in the cloud-based
business. Koulopoulos (2014) add that the cloud
concept is not only related to technology but to a 21st century megatrend,
where physical computers are replaced by virtual computers.
In this regard, Avrane-Chopard
et al. (2014) provide SMB information that is highly representative for this
sector, as follows:
· By 2015 and worldwide, this market
will offer a revenue opportunity of USD 28 billion with a net profit of between
USD 3.5 and 4 Billion (14% approximately), which will represent half of the
total cloud market. This figure takes greater significance since many companies
focus on their most frequent customers, leaving aside the real growth
opportunities that represent new customers and new markets.
· SMB have a need for higher
personalization levels, although they have more limited resources than large
companies. Without a doubt, this is something that organizations must take into
account when launching their offers to the market.
· In this scenario, the relationship
between the firm and its business associates must be rethought. On the one
hand, the channels that provide value added come from a more standardized world
and their knowledge has never been as profound as it is needed. As for the
firm´s perspective, whenever a new and disruptive business is being considered
it represents a great opportunity for competitive advantages in that
market.
Reaffirming the precedent concepts, Berland
and Furtado (2015) indicate that:
· The practices and approaches that
technological companies have carried out with their DC have already been left
behind and new ones must emerge. They establish that common practices, such as
gathering market information and reviewing price gaps with main competitors,
have less chances of producing a competitive advantage.
· In 25 firms in which they
implemented new practices, they obtained positive results selling products over
market prices and with better margins. Also, these firms applied more
analytical tools, which gave them the advantage of having more elasticity in
their prices when compared to their competitors.
New ways and efficiencies have taken place in this type
of structures. In this sense, Duarte et al. (2015) say that -in the early
2000s- technological companies grew their distributors’ network exponentially,
and then began to explore sales through online platforms and other direct ways
of reaching customers. At the same time, they establish that -for the last
years- the distributor schemes are being revised as worldwide CEOs and
Directors have become more aware of market penetration strategies. So, there
are two fundamental questions that the authors raise:
· Is it necessary to maintain -in all
the businesses that the firm carries out- the high costs of adding a DC?
· Are there ways to optimize the DC
business presence?
Additionally, they consider certain trends that are
currently happening, which serve when reviewing the DC’s scheme that is
available, as follows:
· Product cross-selling practices and
value added focus per transaction.
· Productivity and cost efficiency
optimization in each DC, especially in those markets where greater competition
is observed.
· Customers are increasingly more
informed, posing two basic challenges at DC level: to innovate and to best
satisfy customer needs.
· Using the correct DC strategy
implies to produce competitive advantages as capillarity and penetration
increase considerably when the strategy is the correct one.
· The DC represent a market driving
force in the long-term customers relationship, influencing their decisions.
Also, that the DC are reinventing their role since they intend to have clear
the customer purchasing behaviors in order to better predict their needs.
Contributing to the prior considerations, Del Molino et
al. (2014) express that firms that have DC and customer management as
priorities have grown their net sales results 3% to 6%, when compared to their
competitors. In their study, which included 141 dispersed organizations
worldwide, only 24% could demonstrate that they had those priorities, of which
only 7% turned out to be multinationals. As a result, they suggest the
following strategies:
· Invest the greatest amount of resources in the businesses that produce
the highest income:
Resources should be directed towards the fastest growing businesses in order to
generate a special focus and an avid chain.
· Generate collaborative relationships with our clients and distribution
channels: successful
companies confront customers on -at least- seven important issues, including
innovation and promotions, among others. On the other hand, laggard companies
only confront them on a maximum of three issues.
· Use effectively the data produced from market actions that are carried
out (such as
promotions and marketing events, among others): take advantage of the largest
number of analytical paths that can provide useful tools for decision-making.
· Increase sales, using efficient and innovative models to reach
customers: leading
companies review their DC strategy annually/quarterly, understanding if those
they own are correct, adding new or removing others.
In this section, were revealed different elements that
show the importance of having an efficient DC chain that provide capillarity
and more customer reach. Particularities are raised regarding the technology
industry, as well as benefits and challenges. It is observed that companies
that develop a channel network focused on what their business can offer,
customer advantages and value added are more successful. Finally, conflicting
visions on new ways of reaching the market were addressed.
As a summary, the following Figure 1 shows the different
aspects and particularities on DC analyzed:
Table 1: Distribution Channels (DC)
Source: Own
2.2.
Business factors that influence the
technological industry
In this section, different fundamental elements that were
identified and support this investigation are covered, specifically
organizational growth, value creation, corporate strategy, marketing and best
practices, which may help to identify theoretical elements needed to achieve
new performance levels.
2.2.1. Organizational growth
Growth becomes vital for company’s health, coming from
different sources. Thus and in accordance with Balderrama
and Arán (2007), growth has its origin in the
following different approaches:
1) Along the value chain, for which it is fundamental the vertical integration concept. It is
understood as businesses that belong to the same firm's original business value
chain. There are different reasons for vertical integration such as the
internalization of key business activities and ideas that contribute to product
quality. To achieve a successful vertical integration, it is required the
firm’s flexibility for change management. As an example, is cited Nintendo
–Asiatic firm dedicated to video games and consoles- which had a tremendous
annual growth of 90% between 1984 and 1992. Their success factor was based on
following equilibrium between internal and external developers. Examples of
successful internal developments are Donkey Kong and Super Mario Bros, among
others.
2) New geographies, having as a result greater economies of scale and increased
international market sales. For example, Wal-Mart -the USA firm- has only 20%
of sales outside their territory.
3) New business diversification. Walt Disney World, the USA firm born in 1923
as a film producer, grew between 1994 and 2000 at a 25% average -with annual
revenues of 25 billion dollars- thanks to other additional activities as:
· Animated films elaboration and
production.
· Merchandising stores related to the
themes of his films.
· Cruise fleet operation that depart
from Florida.
· Theme parks in Florida, Europe and
Japan.
· Television channels, such as ESPN,
Disney Channel and ABC.
One of the fundamental questions that the
authors raise refers to growth possibilities from the non-traditional business,
proposing the following meeting points:
· Almost all businesses shared the
same characters; the most famous were Mickey Mouse, Donald Duck, and the Pluto
dog.
· The characters that emerged from
their films and cartoons nurtured each one of these divisions and were present
in the stores as merchandising. Also, they interacted with tourists on their
cruises and theme parks, as well as being the protagonists in their television
channels.
· The characters were the ones that
made Disney different since they represented diverse aspects of society; for
instance, values, American ingenuity and family entertainment.
In contrast, the authors give examples of firms
that have decided to remain loyal to a single business unit, without
diversifying as Wal-Mart, which has remained specialized and faithful to its
distribution business. Its growth has been of 20% annual average in the last 20
years.
4) Merger and acquisitions with/of other companies, accessing to new resources and
customers that were foreign to the buying firm. These resources could be
internal (ex.: technologies and deposits) or external (ex.: customers and
vendors). As an example and between 1995 and 2001, the Spanish firm Telefónica had an annual growth of 27% through different
acquisitions (ex.: Telesp in Brazil).
5) Strategic alliances, referred to:
· Complementary alliances:
collaboration agreements in pursuit of common interests, accessing to resources/capacities
that the firm did not currently own.
· Addition alliances: contributes to expanding
coverage and penetration in their respective markets.
· Mutual development alliances:
develops a synergy to achieve a common objective.
It is said that there is no type of alliance
that is more convenient than another, having some benefits (like quick access
to capacities and resources and risks reduction) and inconveniences
(management, and faster learning and business control from one of the
partners).
From what is stated in this section, it is observed that
firms’ growth strategies connect with value creation, which can come from the
different sources that were previously detailed. Obviously, many of these
growth strategies can be implemented through skilled DC that help with their
offers to produce a valuable market differentiation.
The following Figure 2 presents the fundamental concepts
pointed out in this section:
Figure 2: Organizational growth
Source: Own
2.2.2. Value creation
Creating value implies achieving synergies for business
sustainability. In this sense, Parada Balderrama and Planellas Arán (2007) say that to create value it is needed
“corporate parenting”, understood as the sum of the parts contributing to a
better whole or final product. Moreover, they assert that real value creation
happens when the company contributes to improve the different business unit
capacities, and that businesses that do not generate value are candidates to be
sold or -more frequently- disappear, since they do not offer something
different to the market.
Complementing these concepts, Martínez
(2011) states that:
· Value creation must be the objective
of any company, not profit maximization.
· Value is generated when the benefits
exceed the costs incurred; so, the goal should be to maximize profits and
minimize costs.
· In order to maximize value creation
and to decrease costs, it is necessary to perform an adequate value chain
analysis; that is, to focus and measure processes that produce customer value.
Also, suggests that there is a limitation to costs minimization as a company
cannot generate benefits without costs and –in addition- the more benefits that
are intended to be generated, the more resources will be required.
As a result of this section, value creation represents
the fundamental objective of any organization. As it may come from internal
and/or external processes, the DC chain represent an important external source,
adding capacities and skills that firms currently may not have or don't want to
develop. As a result, a DC can be conceived as a fundamental strategic partner,
providing customer and market value.
The following Figure 3 presents the main concepts
expressed regarding firms’ value creation:
Figure 3: Value creation
Source: Own
2.2.3. Corporate Strategy
This concept is strictly connected to organizational
growth and future business health, for which it becomes important the DC
structure definition, as channels represent an important part of the strategy
implementation. As a result and in the following paragraphs, will be described
its importance, scope and why strategic positioning is so important for
organizations.
Strategy importance and scope
Freedman (2016) states that strategy is connected to the
capacity to observe the world in the short and long terms, and in a different
manner; causes and symptoms should be identified, and consequences should be
prevented. In addition, López-Quesada (2017) says
that it is referred to the way goals and objectives are achieved with specific
tactics.
Complementing the above and according to Porter (2015),
strategy differentiates a company from competitors, basing on three generic
strategies: cost, differentiation and niche. Each of these strategies
represents the need for a diverse organizational structure with specific
characteristics.
As a consequence, firms are urged to establish adequate
strategies and follow strategic planning rules to set up a differentiation in
their markets. That is why, Kotler and Amstrong
(2012) suggest that strategic planning must be consistent with company’s
mission, vision, goals and capabilities, and that tactics differ from
strategies because the former encompasses short-term actions and are subject to
change, while the latter connect with the longer term and sustainable
competitive advantage. As a consequence, tactics meet small specific goals,
while strategy is set with a broader vision and determines how the
organization's success will be achieved.
As a result, López-Quesada
(2017) understands strategy as a general plan with three different kinds of
planning: 1) strategic, that connects the vision, mission and values with
company strategies/policies, 2) tactical, referred to strategic planning
execution, following objectives, action, budget and results, and 3)
operational, which uses financial, human and material resources.
Strategic positioning
Porter (2015) indicates that strategic positioning helps
to achieve a competitive advantage, for which differentiation from competitors
becomes key. Likewise, it refers to three fundamental principles: 1) creates a
unique and valuable position, 2) develops good judgment and common sense, key
for decision making, and 3) is embedded in company's processes. Thus, strategic
positioning emerges from three different sources:
· From the satisfaction of few needs
to a large number of customers (generic cost strategy).
· From the satisfaction of a wide
range of needs to few customers (generic differentiation strategy).
· From the satisfaction of a wide
range of needs to a large number of customers in a specific market sector
(generic niche strategy).
Also, the way in which strategic decisions are made
requires further analysis. Porter says that the increasingly competitive
markets lead to making decisions under extreme pressure, so that imitation
seems inevitable and differentiation is a more arduous and long-term path. For
this reason and in order to establish a successful strategy, suggests that
risks must be taken and experiences from all organizational levels should be
considered. Therefore, strategy must be democratized and shared by the vast
majority of employees.
In this section, considerations were made on corporate
strategy that is applicable to DC organizations. Higher levels of strategic
understanding and participation will allow many more companies -and DC- to
implement a strategic process in order to be successful in the increasingly
competitive markets they serve, supporting business management and future
growth.
The following Figure 4 shows a summary of the fundamental
concepts expressed in this section:
Figure 4: Strategy
Source: Own
Previously, different topics were covered connecting with
corporate strategy, sustainable growth and value creation. As a result, it may
be concluded that a clear and sustainable strategy becomes important to create
a unique market positioning, leading to growth and value creation alternatives,
vital elements in which technological firms focus their DC to add their skills
and capacities in their markets. The following Figure 5 shows the basic
concepts expressed before:
Figure 5: Strategy, growth and value creation
Source: Own
2.2.4. Marketing
This discipline is about establishing relationships
between the firm and its customers. In this way, understanding what they want
and the best way to reach them with products/services will help in designing a
more effective and efficient DC network, topics that will be discussed below.
Its scope and the Marketing Mix (MM)
According to Kotler and Amstrong
(2012), marketing represents the process by which companies generate value and
exchange valuable relationships with their customers. They suggest that this
process consists of five steps:
1) Understanding the market and
customer needs.
2) Customer driven marketing strategy
design.
3) Marketing program development
focused on providing superior customer value.
4) Profitable and long-term
relationships with customers.
5) Customer’ value capture.
The authors add that customers have needs and wants, and
that demand represents wants that are supported by a purchasing power. In this
sense, marketing management is related to supply a specific target market with
a distinctive value proposition, which is connected to a set of benefits that
the company uses to satisfy them. As a result, it is fundamental to understand
which customers must be served and the best way to do it.
Complementing the prior concepts and according to Kotler and
Keller (2012) and Perreault et al.
(2013), marketing focuses on recognizing, finding and satisfying
customers’ needs, highlighting the importance of designing strategies and plans
to carry out a successful marketing plan. Also, they specify the activities
that determine a successful marketing management function, among which are
mentioned: plans and strategy design; customer focus; communicating and
granting value; and generating long-term profitable growth. In other words,
they describe marketing as the process and execution of plans related to the
business -in general-, but specifically to the 4Ps or Marketing Mix: Product,
Price, Place (distribution), and Promotion, aiming at total customer
satisfaction and organizational objectives’ achievement. In a deeper detail,
they say that:
· Products are understood as benefits
and characteristics that are offered to a customer, considering
functionalities, duration, value added and quality, among others.
· Price is determined by the product
total cost and is the most sensitive variable as it has a great connection with
competition: a wrong pricing strategy can cause a significant impact in company
sales.
· Place or distribution refers to the
place where the product/service is marketed. Basically, it considers the chain
that is utilized for reaching the customer's hands, from the manufacturer to
the final consumer. In technology, the DC receive special consideration in this
aspect.
· Promotion indicates which channels
are used for customer´s persuasion and communication. Basically, it has to do
with the efforts that a company carries out so that its product can increase
its level of acknowledgment, generating higher sales. Specifically, promotion
covers advertising, personal sales, public relations and market promotions.
In conclusion, these four elements are very important for
any firm as -if adequately managed- they are connected with company strategy
and competitive advantage.
Service marketing
Unlike the acquisition of a tangible good, when the
consumer purchases a service his/her expectations and criteria are different.
Also, the experience is another new factor because it is very important the way
the company interacts with consumers. According to Kotler and Armstrong (2012),
people satisfy their needs and desires with products (tangibles) and services
(intangibles), but products are not only limited to physical objects; they
refer to any element that can satisfy a need, such as physical objects,
services, and ideas. As a consequence:
· Services (intangibles) are produced
by the interaction of a seller and a buyer, not in factories, and are connected
with an activity or process, not with an object.
· Tangibles (goods) are maintained in
stocks and ownership is transferred, but for services customers participate in
their production and cannot generate stocks.
· Some services are part of a product
and vice versa.
According to Kapoor et al. (2011), the products –to which the 4Ps are applied: product, price, place and promotion- are insufficient when speaking about intangibles, being necessary to add 3Ps more: people, physical evidence and processes, as follows:
· People: they play a main role in the
goods and services marketing. Company success depends on actions in front of
consumers for which it is necessary to foster a harmonious work environment and
continuous training to achieve the desired results. Firm’s values, vision and
mission must be understood and shared by every employee, and -in this way-
customers may have workers’ perception as not only mere professionals, but as
brand ambassadors. In this way employees generate empathy with consumers,
understanding their needs and knowing how to best satisfy them.
· Process: it is referred to the
customer service method. Consumers have expectations that must be met, and
–additionally- must be equal to all customers in a standardized process and
with adequate quality levels, coming from every company department.
· Physical evidence: the product/service quality must be supported by a physical evidence. This instance is of utmost importance, especially in remote sales channels, such as the internet or DC, the case of this study. Customers have certain caution when purchasing goods/services in these channels and seek support from previous buyers’ experiences, gaining greater confidence while completing the transaction.
Target Market (TM)
A central marketing element is represented by the TM.
According to Kurtz and Boone (2013), it is understood as the set of customers
on which the marketing and sales efforts of a firm are directed. As a result,
the segmentation process -based on customer’s behavior, geography, demographics
and/or habits- becomes important to better manage the marketing mix.
In addtion, Porta (2015) says
that the correct TM definition is essential so that the company's efforts are
not wasted and that no firm can take every customer as a TM. Hence, there is a
need to clearly define market objectives. Also, a clear TM definition does not
enable potential customers from being attracted to the offer, but rather
optimizes each dollar that the company directs to the market, resulting in
better effectiveness and efficiency.
In order to have a better TM delimitation, the author
says that the following aspects should be taken into consideration:
· Actual customers. Special attention
should be paid to the reasons why they buy the products and the characteristics
they have, such as demographic, geographic, psychographic and behavioral.
· Main competitors and the TM that is
being served, which must be homogeneous and measurable.
· Actual company products/services,
listing their strengths and weaknesses.
Branding
For Razak (2020) branding
comprises:
· Every distinctive tangible and
intangible asset related to the brand identity. It aims to build a consistent,
differential and sustainable brand promise and experience over time.
· A work approach and a philosophy to
which all the assets linked to the brands should be tied. In this sense, it is
a process of building, growing, maturing and managing a brand.
· Four basic functions: strategic
brand management; consumer and market knowledge; communications; and design.
Moreover, the author says that branding contributes to a
promise construction and to a distinctive, relevant, complete and sustainable
experience over time. It is necessary to understand that a brand is connected
to emotions, feelings and
perceptions that occur in consumers’ minds and that are relative to a
product/service. That is why it refers to a sign that is made or placed on
someone or something, to make a distinction, or to denote quality or belonging.
As a summary and coinciding with Kotler and Keller (2012), “brands are
emotions, feelings and perceptions that occur in consumers’ minds”.
As a result, Razak suggests
that a brand prevails in consumers’ minds, for which all types of contacts
between the brand and people are very important and influential. In this
regard, branding takes the brands as a starting and destination point, defining
the ideal setting for their growth and building a significant meaning in
peoples’ minds.
In this section, marketing was presented as a process
that generates value and worthy relationships exchanges with customers. The
traditional marketing mix –the 4Ps applied to tangible traditional goods-
should be expanded to 7Ps when dealing with services in order to support
marketing plans and strategies. Moreover, marketing management eficiency and
effectiveness focus on the right target market, segmentation, control and
branding, that define de ideal setting for firm’s growth and builds the right
values in people’s minds. Its final objective refers to supplying a specific
target market with a distinctive value proposition, recognizing, finding and satisfying customers’
needs, wants and demands. As a consequence, an appropriate DC design and
implementation scheme becomes fundamental to achieve a specific result,
reaching the targeted customers.
In the following Figure 6, it is shown a summary of this
section:
Figure 6: Marketing
Source: Own
2.2.5. Best Practices (BP)
BP involve delving into what others know and implemented
in order to be successful in their industries. As a consequence and in this
section, it is intended to synthesize some BP found, highlighting certain
elements that may be seen as value added for this study.
In fact, IMMPC (2020) indicates that BP consist on a
series of methodologies, systems, techniques and tools which have been applied
and approved since they have reported outstanding results in large, medium and
small companies. Its objectives are based on improving performance in
organizations, through boosting strategic, operational and administrative
processes in a methodical way.
Jiménez (2014) explains them as innovative practices that
contribute to company’s performance improvement, implying knowledge
accumulation, lessons learned, reflection and analysis on what can be applied
or not in different situations and contexts.
Similarly, Kenton (2018) suggests them as a set of
guidelines, ethics, ideas or benchmarks which are useful in different
organizations. Usually, firms share information on how to implement them in an
organization, although it should be said that some turn out to be trade secrets
that have been legalized as “utility patents”.
The challenges presented in other industries may well be
considered as a starting point for understanding what may be applied in
technology and telecommunications. Through the study that Murguia
and Correa (2013) made on the insurance industry, they establish certain
challenges that are important to take into account when developing a company's
distribution network, especially in the technological/telecommunications
industry, such as:
· Consider changes in the country’s
regulatory framework and new technologies that could generate business
modifications.
· DC credentials and certifications
must be aligned with company strategy to have an impact on the market.
Certifications must be administered by an independent entity outside the company:
specifically and in the technological market, the firm that is mostly chosen is
Prometric[2].
· Internationally developed BP must
nurture firms and enhance their operation.
· Encourage innovation, coming from a
deeper customer interaction.
· Compensation and incentive schemes
have a strong impact on DC brand loyalty and on the priority that the brand
will have within their operation.
· Business growth comes from
recruiting new DC.
· Training sessions should go beyond
technical matters. That is why additional business-related skills should become
an important element in the training process.
· Firms should provide useful tools to
their DC, such as certifications, training, and business and technical support.
In this section, were discussed some of the BP that are
recommended for a more effective and efficient customers’ reach, which are
summarized in the following Figure 7:
Figure 7: Best Practices (BP)
Source: Own
3.
FIELD WORK
The field work that supports the present study consists of
three executives’ interviews[3]
that helped to better understand the DC networks operation in Argentina. For
more than 20 years, they have had an exposure on this matter at different
Director/Management levels, and for important technological multinational
firms, with responsibilities in the Latin American region.
Thanks to these semi-structured interviews –that were
held between Feb.-Apr., 2020 and lasted approximately one hour each- it was
possible to deepen on the manufacturer-DC relationship and in different market
characteristics. The basic questions used are detailed as follows:
· What is the importance that DC have
in the technological business?
· What are the manufacturers’ benefits
when implementing an adequate distribution chain?
· What are the DC’s benefits when
managing a brand?
· Do you see DC improvement
opportunities in Argentina?
In the following paragraphs and ordered in diverse titles
it is shown a summary of what these executives contributed.
3.1.
Channel marketing models
One of the main DC benefits was connected to the geographic
coverage, approaching the largest number of customers in the most effective
possible way. A vast DC network implied territorial coverage and aimed for
brand awareness growth. In addition, they produced huge savings in a large
sales force investment when covering a territory.
There was a need for two different kinds of organizations
in the market: the wholesalers and the DC. The formers purchased computer
products directly from the manufacturer and then sold them to the DC, which
provided specific end customers’ requirements response. The latter had a
complementary role connected mainly with:
· Bringing the brand and its products
closer to final customers.
· Providing manufacturers with greater
capillarity and reach in certain places that were difficult for the company and
the wholesaler. Moreover, it was important a close contact between the
manufacturer and the DC, since working together many improvement opportunities
could be individualized.
Additionally, were mentioned three market coverage strategies:
1) Direct: the manufacturer had a
direct relationship with end customers, not needing a DC involvement at all.
So, manufacturer´s commercial executives provided direct assistance to end
customers.
This model was cost-effective, but it might
have potential for loss of coverage. Example: Dell Computers Inc.
2) Indirect: the brand had an indirect
relationship with end customers, requiring the DC intervention in every
transaction. In this case, the commercial executives coordinated and supervised
DC activities and actions.
This model had better coverage possibilities,
not being competitive when supplying medium and big customers. Example: Hewlett
Packard.
3) Hybrid: There was a combination of
assistance to end customers, as some would be served directly and others
through a DC. As a result, it was needed a clear manufacturer’s definition of
which customers would be served directly and which indirectly, considering the
benefits and costs in each case.
It was raised as the most flexible and
adaptable model to customers’ requirements and needs. Example: Oracle Corp.
There was a coincidence that the most compatible strategy
for the technology industry was the hybrid model as it synthesized the greatest
manufacturer’s flexibility to approach the market effectively.
In addition, they agreed that the consultative sales
–done by some DC or directly by the brand- was the most appropriate approach in
bigger and more complex projects.
Thus and in certain cases, a CD could be considered an
appropriate vehicle to reach different final customers in Argentina.
In turn, some experts pointed out DC skills and
resources’ shortages to be able to carry out some value added businesses, which
involved more complex solutions tailored to end customer requirements. That is
why manufacturing companies provided a specific support and plans to this kind
of DC not to lose them.
3.2.
Improvement opportunities
Out
of what some executives suggested, there were different areas in which
manufacturers-DC relationships could be improved, like:
· Better communicate the
manufacturer’s objectives to the DC in order to let them understand the
benefits that the brand could offer and its future development plans.
· Offer higher DC profitability to
privilege manufacturer’s over competitor’s products and services. To better
develop this area it was important to enhance training and business strategies,
such as promotions, incentives and demand generation for end customers.
· Improve incentive programs
-conceived as market development initiatives related to the medium-term- and
promotions –oriented to the short-term. It was required to adequately
coordinate manufacturers-DC actions.
· Reduce manufacturer-DC conflicts
(called vertical channel conflicts) on end customers demand generation. From
one side, the DC requested to the brand this type of demand generation, but
-from the other side- the manufacturers expected from the DC to do so. Also and
in the case of the server[4]
business, manufacturing companies understood that the DC should advise
the end customer on which server could better satisfy their needs and –also-
transmitted the product value. These conflicts deepened as each party was
focused on their own points of view about who was responsible on end user
demand generation. The basic idea that was raised by some experts was referred
to visualize the DC as a brand evangelizer and as a manufacturer’s partner in
the market.
For Argentina, it was remarked that there were
firms that acted as a useful help and as a moderator for commercial initiatives
in the manufacturer-DC relationship, like IT Sitio, a
local Argentinean firm serving important technological customers.
At the same time, it was suggested a difference
between generating demand in the massive businesses -understood as products for
daily use and for sale in large quantities, for which 80% of end user demand
was generated by the brand- and in the value added business, which corresponded
mostly to the DC.
· Opportunity Registration process
improvement: represents a DC investment protection in certain end customers
when two or more DC were working for the same business proposal. Enhancing this
process in terms of transparency and opportunity registration could help the
manufacturer-DC relationship and improve the entire customer development
process.
· Refine business training -in
general- but specifically on management and marketing topics, including
product, services and support. In other words, a better business understanding
and involvement could bring greater sales and increased profitability for the whole
network.
In
the following Figure 8, it is shown a summary of this section:
Figure 8: Field work
Source: Own
4.
CONCLUSIONS
Manufacturing firms were utilizing various distribution
models; among them the hybrid one was remarked by experts as the most suitable
in the technological arena, since it was producing the highest levels of
flexibility and profitability. Also and as these firms needed the best market coverage, they had to
identify those customers that needed direct attention and the ones that should
be supported by a DC, depending on each business requirements and needs.
As a result of this investigation, the following conclusions
–organized in different titles- were reached:
4.1.
About Distribution Channels (DC)
In the Theoretical Framework (TF) it is said that DC are
used as vehicles to deliver products/services from the manufacturing company to
the final customers, being brand’s evangelizers in the market. Long DC and
hybrid models are mostly used in the technological arena, improving the
commercial reach. In addition, it becomes important to make the best use of the
new DC that emerge.
Their main benefits correspond to helping final customers
with an overall solution -that may include hardware, software and services- and
a good purchase experience. From the manufacturer’s side, it is required to
focus on cost optimizations, channel efficiencies and vertical conflicts
reduction.
Coinciding with what was said before the Field Work (FW)
revealed that the DC main benefits were connected to a better geographic
coverage, brand awareness and savings in increasing sales force. For those
reasons, the importance of consultative sales and different market coverage
strategies were pointed out. In this sense, the interviewees said that the
hybrid coverage used by manufacturers in this industry was giving the highest
flexibility and profitability.
Additionally and in the TF, remote channels and online
platforms represent big challenges for this industry, despite physical channels
are still important because of the need for face to face attention and product
testing at the time of purchase. Other challenge that was indicated in the FW
corresponded to the Opportunity Registration process improvement that
-adequately managed- could protect the DC investment in certain customers.
Different authors said that –for manufacturers- there was
a need to identify and understand the whole DC network value and, specifically,
which were the top channels by category to partner and grow together. As a
result, it was fundamental to work on the optimal channel level mix and sales,
on the end customer experiences with the brand and on the specific actions
required on channel mix.
Moreover, they remarked their importance for business
growth through opportunities in the technology/cloud-based businesses and in
SMB that needed more personalization and value added focus in order to fight
against product commoditization. It was suggested to find synergies,
collaboration and communication among the diverse constituents of this business
to help on market development.
4.2.
About business factors in the
technological industry
In the TF it is suggested that the DC represent a
fundamental value creation external source for the technological industry
manufacturers, helping on:
Growth, as they becomes
essential for organizational health through new markets and businesses
expansion (better coverage), diversifications and collaborations.
Value creation, coming
from the whole value chain and the processes that are used. It is the result of
synergies for business sustainability through capacities/skills improvement. As
a consequence, businesses that are incapable of generating value tend to be
sold or disappear.
From another perspective and for manufacturers, some
interviewed experts said that an adequate DC training was one of the bases for
differentiation and value creation. But from the DC side, they noted their key
role in providing integral hardware and software solutions to end customers,
for which knowledge and support constituted their main value creation sources.
In this sense, it was admitted that value added was important in business, but
were verified skills and resources’ shortages when carrying out some end
customer complex and tailored solutions.
Additionally, the FW
disclosed some improvement opportunities, such as in the communication of
manufacturer’s objectives, higher DC profitability, incentives and promotions
coordination, end customer demand generation, and business, marketing and
management training.
In the TF it is said that strategy and marketing are
important areas in which a special focus should be given for DC’s
network/manufacturers better operation.
Differentiated long and short term initiatives must be
aligned to achieve goals and objectives. Wholesalers –that purchase big
quantities- and value added DC –focused on specific businesses- should follow
cost and differentiation strategies, respectively. Strategic focus and tactical
and operational plans should enhance market opportunities and results,
achieving competitive advantage.
Creating a unique value proposition and excelling
customer processes represent a way to get away from imitation and
commoditization. For that, strategy formulation should be democratized in many
more organizations –manufacturers and DC- to serve as a vehicle for value
creation and growth alternatives identification. Finally and to have a better
implementation in the technological market, the DC should be part of its
definition and implementation. In addition, interviewees insisted that it was also necessary -for a
better market impact- to make a distinction between DC for the massive and the
value added businesses.
Additionally, marketing –with the 7Ps for services- was
presented as a process by which firms
generate value and exchange worthy customers relationships. Its objective is to supply a specific target market with a
distinctive value proposition, becoming fundamental to understand which
customers must be served and the best way to do it. Brands must build a significant
meaning in peoples’ minds and be the base for firm’s growth.
As a result, effective business environments should
direct strategy and marketing plans to frame adequate settings for
organizational positioning and growth, creating long term customer value.
Finally, best practices in the DC operation should be
considered as a way to evolve to new performance levels, including
credentials/certifications (administered by independent firms); internationally
developed business practices; innovative procedures/processes coming from a
deeper customer interaction; improved compensation/incentive schemes; new DC
recruitment; comprehensive training sessions; and better tools from
manufacturers (certifications, training, and business and technical support).
5.
PROPOSAL
Currently, technological industry manufacturers rely
significantly on their DC network. That is why and from what was stated in this
investigation, a proposal for manufacturers-DC operation improvement could
comprise the following aspects:
5.1.
Business strategy, growth and value
creation
Strategy,
marketing and specific plans should be collaboratively developed between the
brand and the DC in order to achieve competitive advantages. Each organization
should be part of a comprehensive operational future vision and perspective for
improvement, differentiating short and long term initiatives. As a result, the communication and sharing of manufacturer’s
objectives with the DC network becomes the fundamental starting point on this
matter.
Growth and value creation are fundamental for
organizational health and sustainability, for which there should be considered
perspectives on new markets/businesses, product diversification, and business
processes improvements. Opportunities in the technology/cloud-based businesses
and in SMB should be part of the strategic thinking process.
Another focal point in this aspect, referrers to develop
in both organizations –manufacturers and DC- the need for more personalization
and value added focus to fight against product commoditization. Market
development should come from finding synergies, collaboration and communication
among the diverse participants. At the end of a democratic strategic
formulation, each DC should have a detailed plan that should respond to
building a unique value proposition and excel on customer processes and
experiences.
5.2.
Business model, demand generation
and incentives/promotions
Long
and hybrid distribution models should be reviewed, focusing on which are the
most suitable channels for market coverage and the best way to serve each final
customer. In this regard, new DC must be adequately catalogued and assigned to
end customers, and adequate DC retention plans should be put in place.
The 7Ps of service
marketing should be directed to exchange worthy customer relationships, and a
customer profitability analysis should be performed to determine if they are
being served in the best way possible and in the most efficient/effective
manner.
End customer
demand generation is a key conflict that should be resolved to appropriately
apply the manufacturers and DC efforts to the market.
Customer purchase experience should be seen as the sum of
different factors, which include: brand strength and support; profitability;
customer/market focus, training, collaboration, communication, problem solving,
cost optimizations, channel efficiencies and vertical conflicts reduction.
Remote channels and online platforms should be
implemented in order to serve the most quantity of customers and/or to give the
best information in a timely manner.
Periodic reviews on the
Opportunity Registration processes should be performed as a way to protect key
customers investments made by the DC. The customer perspective should be the point of
departure for this analysis, distinguishing among value added/consultative
sales and massive clients.
As a result, it is necessary to identify and understand:
a) the whole DC network value, b) the top channels in each category to partner
and grow together, c) the optimal channel level mix and sales, d) end customer
needs and experiences, and e) specific actions required on channel mix.
DC incentives and
promotions must serve as a source for motivation and market focus. That is why
it is necessary an adequate collaboration to identify and coordinate these
programs.
The brand should
periodically survey customers to understand the attributes that they recognize
and the meaning it has in their minds.
5.3.
Training/education initiatives
Comprehensive
training/education initiatives -that include manufacturers and DC- should be
developed as they are a core aspect for differentiation and value creation.
Their main objective should be directed to resolve: a) resource’s
shortages/mismatches, b) complex and tailored solutions, and c) strategic,
marketing and management issues.
Specific trainings for different organizational levels
should also be considered. For example, employees that are in charge of
physical channels should be trained in customer service and products to assure
better purchase possibilities, and CD’s executives in leadership and change
management, among others.
5.4.
Best Practices
A constant market best practices analysis should be
performed, determining if there is a need to review strategies, innovations,
practices, procedures, processes, certifications, credentials and/or tools
(like end customers visits together between manufacturer and DC). Benchmarks
against other industries must be included.
This work showed different DC facets of the technological
industry and possible improvement aspects in this type of operations.
Management focus on this complex and exiting environment could bring better
performance levels for the organizations that configure this multi-dimensional
process.
REFERENCES
Avrane-Chopard, J.; Bourgault,
T.; Dubey, A.; Moodley, L. (2014). Big Business in
small business: Cloud services for SMB’s,
McKinsey Quarterly.
Balderrama, P. P., & Arán, M. P. (2007). ¿Qué es estrategia corporativa?, ESADE
Business School, Harvard Deusto Business Review,
Recovered from http://ocw.uniovi.es/pluginfile.php/2669/mod_resource/content/1/Lectura_sobre_Estrategia_Corporativa.pdf, on 04/18/2020.
Berland, M., & Furtado, B. (2015). Why
yesterday’s channel practices won’t win over emerging market customers, McKinsey
Quarterly, Recovered from https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/why-yesterdays-channel-practices-wont-win-over-emerging-market-consumers, on 04/13/2020.
Caylar, P., Dmitriev,
M., Fletcher, B., & Gieder, P. (2014). Change the
channel: A new multi-touch portfolio,
McKinsey Quarterly, Recovered from https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/change-the-channel-a-new-multi-touch-point-portfolio, on 03/12/2020.
Del Molino, C., Díaz, A., & Martins, D. (2014). Lost in translation: the challenge of global
channel and customer management, McKinsey Quarterly, Recovered from https://www.mckinsey.com/industries/retail/our-insights/lost-in-translation-the-challenge-of-global-channel-and-customer-management, on 03/14/2020.
Duarte, B., Nimal, M.,
& Rudolph, S. (2015). Recall Channel Management, McKinsey Quarterly.
Freedman, L. (2016). Estrategia,
Editorial La Esfera de los Libros, Madrid, España.
González, R. M. (2014). Marketing en el siglo XXI, Ediciones Centros Estudios Financieros,
Madrid, España.
IMMPC - Instituto Mexicano de Mejores Prácticas Corporativas (2020). ¿Qué son las mejores prácticas corporativas?, Recovered from http://www.immpc.org.mx/mejores-practicas-corporativas, on 04/19/2020.
Jiménez, D. (2014). ¿Buenas o Mejores Prácticas?: La diferencia que nadie te contará, Recovered from https://www.pymesycalidad20.com/mejores-practicas-diferencia.html, on 03/19/2020.
Kapoor, R., Paul, J., & Halder,
B. (2011). Services Marketing:
Concepts & Practices, Tata McGraw Hill Education Private Limited, New
Delhi, India.
Kenton, W. (2018). Best Practices, Recovered
from https://www.investopedia.com/terms/b/best_practices.asp, on 04/20/2020.
Kotler, P., & Amstrong,
G. (2012). Marketing, Ediciones
Pearson, México.
Kotler, P., & Keller, K. (2012). Dirección de Marketing, Ediciones Pearson, México.
Koulopoulos, T. (2014). Navegar en la nube, Editorial Océano, México.
Kurtz, D.; Boone, L. E. (2013). Contemporary Marketing, South-Western
Cengage Learning, Mason, OH, USA.
Longenecker, J.,
Moore, C., Palich, L., & Hoy, F. (2012). Administración de
pequeñas empresas, Cengage Learning, México.
López-Quesada, A.
(2017). Estrategias de diferenciación,
Ediciones ESIC, Madrid, España.
Martínez, J. B. (2011). El valor de una empresa y la creación de valor de esa empresa, Recovered from file:///C:/Users/.%C2%B4%C2%BF/Downloads/Dialnet-ElValorDeUnaEmpresaYLaCreacionDeValorEnEsaEmpresa-3816159.pdf, on 04/18/2020.
Murgia, C. I.; Correa, A. C. (2013). Convención Aseguradores, XXIII Congreso, México.
Peris, S. M., Guerrero, F. P., & L´Hermie, C. (2008). Distribución comercial, ESIC, Madrid, España.
Perreault Jr., W., Cannon, J., & Mccarthy, E. J. (2013). Basic Marketing, Mc Graw-Hill Higher
Education, New York: USA.
Porta, M. (2015). How to define your target market, Inc.com, Recovered from https://www.inc.com/guides/2010/06/defining-your-target-market.html, on 04/19/2020.
Porter, M. (2015). Estrategia
competitiva, Editorial Patria, México.
Razak, A. (2020). Qué es y para qué sirve el branding?, Branfluence, Recovered from https://www.branfluence.com/que-es-branding/, on 04/19/2020.
Selva, J. P., & Conde, E. R. (2013). Dirección de Marketing: variables
comerciales, Editorial Club Universitario, San Vicente, España.